OIM 210 Lecture Notes - Lecture 3: Opentable, Monthly Active Users, Information Asymmetry
27 Feb 2017
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Technology not rare, value varies, easily imitated, has substitutes. Data rare, has value, (cid:272)a(cid:374)"t (cid:271)e i(cid:373)itated, can"t be substituted. Key resources for competitive advantage: imitation-resistant value chain organization. Value chain procedure that leads to a good/service being produced and distributed. Inbound logistics, operations, outbound logistics, marketing and sales, service. Straddling: when a firm adopts more than one method of doing business (occupies more than one position) yet fails to gain the full advantages of any of these efforts. Gristedes - weak copy of fresh direct (cid:272)ould(cid:374)"t afford online and in-person store: brand value. Microsoft lost billion trying to copy google with. Viral marketing leveraging consumers to promote a product or service. Referring a friend, word-of-mouth: scale & scalability. Scale advantage advantages related to size. The bigger your company is, the more likely you are to create an asset with rareness, value, not imitable, non-substitutable. Economies of scale when a firm can spread costs across increasing units of production.
